Form 301 - Urban Enterprise Zone Investment Tax Credit And Credit Carry Forward (Page 2 of 2) in pdf

Form 301 (09-14, R-16)

Page 2

INSTRUCTIONS

This schedule must be completed by any taxpayer that is a certified “qualified business” desiring an investment tax credit and/or credit

carry forward as provided for in the New Jersey Urban Enterprise Zones Act, N.J.S.A. 52:27H-60 et seq. If the taxpayer claims this

credit on Form CBT-100, Form CBT-100S or Form BFC-1, a completed Form 301 must be attached to the return to validate the claim.

While not required to claim the credit, proof of investment should be retained by the taxpayer and made available for review upon

request.

Certification as a “qualified business” must be obtained from the New Jersey Urban Enterprise Zone Authority (in but not of the

Department of Community Affairs), PO Box 822, Trenton, NJ 08625-0820, Telephone (609) 292-1912.

NOTE:

A qualified business cannot claim an investment tax credit and an employees tax credit in the same year regardless of

whether those credits were earned for the tax year or carried forward from a previous tax year.

PART I TAXPAYER QUALIFICATIONS

In order to be eligible for the investment tax credit, the taxpayer must meet the requirements contained in the Urban Enterprise Zones

Act, N.J.S.A. 52:27H-60 et seq. If an answer to any one of the questions listed in PART I is “NO”, the taxpayer is NOT entitled to the

investment tax credit.

PART II CALCULATION OF ALLOWABLE CREDIT AMOUNT

a) The total and allowable Urban Enterprise Zones Investment Tax Credit for the current year is calculated in PART II. The

amount of this credit in addition to the amount of any other tax credits taken cannot exceed an amount which would reduce

the total tax liability below the statutory minimum. Taxpayers claiming multiple credits must list any credits already applied

to the tax liability to ensure accuracy of the calculation for maximum credit allowable.

b) The minimum tax is assessed based on the New Jersey Gross Receipts as follows:

New Jersey Gross Receipts

CBT-100

CBT-100S

Less than $100,000

$500.00

$375.00

$100,000 or more but less than $250,000

$750.00

$562.00

$250,000 or more but less than $500,000

$1,000.00

$750.00

$500,000 or more but less than $1,000,000

$1,500.00

$1,125.00

$1,000,000 or more

$2,000.00

$1,500.00

provided however that for a taxpayer that is a member of an affiliated or controlled group which has a total payroll of

$5,000,000 or more for the return period, the minimum tax shall be $2,000. Tax periods of less than 12 months are subject

to the higher minimum tax if the prorated total payroll exceeds $416,667 per month.

PART III CALCULATION OF CREDIT CARRY FORWARD

Although there is a limitation of the amount of credit allowed in any one tax year, the amount of the unused tax credit may be carried

forward to a future tax year provided that that tax year falls within a 20 year period beginning with the date of designation of the

enterprise zone, or if later, a period of 20 tax years beginning with the date within the designation period upon which the taxpayer is first

subject to the Corporation Business Tax Act (1945), P.L. 1945, c. 162, N.J.S.A. 54:10A-1 et seq. The amount of the investment tax

credit carry forward is calculated in PART III.

Form 301 - Urban Enterprise Zone Investment Tax Credit And Credit Carry Forward Page 2

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